LANSING — Tamela Peterson, owner and CEO of the Oxford Center, now faces nine new felony charges for health care fraud, nearly a year after being charged in connection with the death of a 5-year-old child.
On January 20, 2026, the Michigan Attorney General’s Office announced that Peterson, 59, of Brighton, was arraigned on nine counts of Health Care Fraud – False Claim, each punishable by up to four years in prison and or a $50,000 fine, according to Attorney General Dana Nessel.
Peterson was released on a $10,000 personal recognizance bond. She is scheduled to return to court at 8 a.m. on January 27 for a probable cause conference, with a preliminary examination set for February 3 in the 53rd District Court.
Fraud Allegations Date Back Years
Prosecutors allege Peterson knowingly benefited from fraudulent billing practices, including billing for services not rendered, at both The Oxford Recovery Center in Brighton and The Oxford Center in Troy.
The investigation into the alleged fraud began in September 2022 after complaints from former providers and patients. According to the Attorney General’s Office, Peterson oversaw operations serving a wide range of patients, including children diagnosed with autism who were enrolled in Applied Behavioral Analysis programs.
Attorney General Nessel said the alleged conduct had broader consequences beyond individual patients.
“Filing false claims impacts not only patients and providers, but also contributes to increased costs of healthcare and medical insurance for everybody,” Nessel said. “Health care fraud undermines the trust between patients and providers.”
Previously Charged in Death of 5-Year-Old
The new fraud charges come while Peterson remains charged in the January 31, 2025 death of Thomas Cooper, a 5-year-old boy who was killed when a hyperbaric oxygen chamber caught fire and exploded during treatment at the Oxford Center’s Troy location.
In March 2025, Peterson was charged with one count of Second-Degree Murder, a potential life offense, or alternatively one count of Involuntary Manslaughter, a 15-year felony.
Three additional individuals were also charged in connection with the child’s death, including the facility’s safety manager, a senior administrator, and the hyperbaric chamber operator. Prosecutors allege mandatory safety protocols established by national fire safety standards and the chamber manufacturer were deliberately ignored.
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